Classical economics played an important role in helping the United States establish which of the following?

• A. A feudal system of land ownership
• B. A centrally planned economy
• C. A market-based economic system
• D. A barter system as the primary means of exchange

Answer: (C)

Verified step by step guidance

1. Understand the core principles of classical economics, which emphasize free markets, private property, and limited government intervention.
2. Recognize that classical economics advocates for a system where supply and demand determine prices and resource allocation, rather than central planning or barter.
3. Identify that a feudal system involves hierarchical land ownership and obligations, which contrasts with classical economics' focus on individual property rights and market transactions.
4. Note that a centrally planned economy is characterized by government control over production and distribution, which classical economics opposes.
5. Conclude that classical economics helped establish a market-based economic system, where voluntary exchange and competition drive economic activity.